Vietnam Proposed to Boost Listings of Five Big State-run Corps in 2009
The Vietnam Association of Financial Investors (VAFI) has proposed that the government of Vietnam make privatization and listings of five state-run corporations in 2009 as part of measures to create a magnet for the slumping market.
The government is recommended to speed up the share sale in VMS MobiFone and listings of the Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Bank for Industry and Trade (Vietinbank), Saigon Beverage Corp. (Sabeco) and Hanoi Beverage Corp. (Habeco).
VAFI said four out of the five enterprises have market capitalization of over US$1 billion, manifest effective performance and development potential. The listings of the five giants will help raise the local market value by 50 per cent, it added.
The measure is also expected to increase foreign capital inflows to boost the market, VAFI said, noting that foreign institutions also seek to buy shares in big enterprises with market capitalization of more than US$1 billion.
MobiFone has been valued at over US$2 billion by Credit Suisse and also plans to conduct its initial public offering this year, paving the way for other Vietnamese telecom firms to go to public.
Recently, Asia-Pacific Chairman of Ernst&Young Jim Hassett also said Vietnam should privatize enterprises with market capitalization of over US$1 billion to help the local stock market recover this year.
The market is predicted to bounce back in the third quarter of 2009. (Securities Investment, New Hanoi)
Vietnamese
